Monday, January 19th, 2026

Government scraps controversial Prime Minister Employment Programme



KATHMANDU: The government has scrapped the Prime Minister Employment Programme, which had long been criticised as unproductive and controversial, and decided to move forward with a new initiative by approving the National Employment Promotion Programme Directive, 2082.

According to the government, the new programme aims to create domestic employment opportunities and better organise the labour market. The National Employment Promotion Programme (Operation and Management) Directive, 2082 has been approved to replace the earlier scheme.

The Ministry of Labour, Employment and Social Security approved the directive on Poush 3 by exercising the authority granted under Section 32 of the Right to Employment Act, 2075. The programme will be implemented across all 753 local governments, the seven provinces, and the federal level. The directive also provides a legal basis for implementing the campaign declared as the “Decade of Internal Employment Promotion.”

The directive identifies four key target groups: unemployed individuals, job seekers, returnees from foreign employment, and people who require special state support.

Under the programme, plans have been outlined to provide skills training, promote self-employment, and support entrepreneurship for youths entering the labour market. A “reintegration programme” will be launched to utilise the skills and capital of individuals returning from foreign employment for national development. Minimum employment programmes will also be implemented through Employment Service Centres at the local level.

As per the directive, skills development training programmes must include at least 390 working hours of vocational and skills training, with 80 percent practical and 20 percent theoretical instruction.

For implementation, a National Steering Committee will be formed at the federal level under the chairmanship of the Minister for Labour, Employment and Social Security. Similar committees will be established at the provincial level under the respective provincial ministers, and at the local level under municipal or rural municipality chiefs.
The required budget for the programme will be allocated annually by the federal government and transferred to provincial and local governments as conditional grants. The remuneration and facilities of employment coordinators deployed at the local level will also be covered by the ministry’s allocated budget.

The directive further provides for workplace accident insurance for workers engaged in minimum employment programmes as well as employment coordinators. To assess effectiveness, the ministry will conduct regular monitoring and evaluation, and requires a report to be submitted within one month of the end of each fiscal year.

Publish Date : 19 January 2026 18:53 PM

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